Ethereum Whales Return: Key Signals for Market Surge
Ethereum is currently trading around $2,600 in midday European markets on June 3, 2023. Despite minor overnight fluctuations, the cryptocurrency continues to demonstrate a six-week upward trajectory that commenced in late April. Technical strategist Kevin (@Kev_Capital_TA) has highlighted this phase in a recent video analysis, suggesting that the market’s price stabilization may conceal deeper structural shifts evident on Ethereum’s essential technical charts.
Ethereum Flashes Bullish Setup Not Seen Since 2020
Analyzing the monthly ETH-USD chart, Kevin emphasizes a key observation—the price has been locked in a substantial trading range since April 2021. This prolonged consolidation often serves as a precursor to significant market expansions. Notably, in April, Ethereum tested the $1,400 mark before experiencing a robust rebound, culminating in what Kevin describes as a “massive demand candle.” This particular candlestick formation is historically significant; it has only manifested twice previously on the monthly ETH chart, with both occurrences followed by substantial upward movements.
- First Occurrence: Following a sharp correction in March 2020, the price rebounded considerably.
- Second Occurrence: Post-selloff in late 2021 leading to a vigorous price rally in early 2022.
May’s candlestick further validated this bullish sentiment with a 41% increase in closing price, effectively overcoming the long-term super-trend line—a threshold that analysts had prematurely deemed “guaranteed to break” without conclusion.
Momentum Indicators Align for Potential Breakout
Kevin argues that the uniqueness of the current market structure lies in the synchronous alignment of high-momentum indicators, a scenario that rarely occurs. The monthly stochastic RSI is poised to execute a “V-shaped cross” out of oversold territory, reminiscent of the previous macro bottom in 2020. Furthermore, he notes the MACD histogram is compressing into a symmetrical triangle—a development four years in the making—that indicates coiled energy, which historically resolves in a pronounced directional movement.
On-chain metrics amplify this narrative. The level of net on-chain money flow, measured through Ethereum exchanges, is at an all-time low but is already showing signs of reversal. This suggests that long-term holders are beginning to accumulate Ethereum, despite a prevailing subdued retail market sentiment.
Dominance Metrics Indicate Broader Market Implications
Kevin’s analysis extends to dominance metrics, specifically Ethereum’s market dominance, which has been illustrated using Heikin-Ashi candles. The first significant green print in over a year has appeared at a critical support zone that previously marked the base for Ethereum’s 2019-20 bull run.
He emphasizes that current Ethereum dominance metrics mirror pre-bull patterns, implying a potential spillover effect into the broader altcoin market. A recently triggered Market Cipher buy signal, alongside the VWAP crossing the zero line and an upward money flow trend, support this bullish thesis. Kevin confidently asserts, “Whales are starting to accumulate, and nobody is paying attention.”
ETH/BTC Ratio: An Additional Layer of Confidence
Further drilling down into the technicals, the ETH/BTC trading pair is currently tagging the 0.5 Fibonacci retracement level of the entire 2020-21 advance. It has printed several demand candles and shifted into green on the Heikin-Ashi readout. Of particular interest is the monthly stochastic RSI, which has spent a staggering 1,066 days below the critical 20 threshold, a traditional mark for bear market exhaustion. Kevin posits that we are on the verge of a significant breakout.
Macro Economic Factors: A Supportive Backdrop
Beyond technical indicators, Kevin underscores the supportive macro environment that could facilitate Ethereum’s resurgence. He contends that while Federal Reserve actions may not necessarily require immediate cuts, clearer guidance towards looser monetary policy combined with manageable inflation levels would suffice to bolster Ethereum’s momentum.
Historically, a decisive shift in Ethereum’s price has acted as a catalyst for what Kevin refers to as “durable altcoin outperformance,” signaling a flow of risk capital into lower market cap assets. Thus, a breakout for Ethereum holds potential implications that extend far beyond its own market.
Resistance Ahead: Critical Levels to Watch
Despite the bullish signals, Ethereum faces substantial resistance between the $2,800 and $3,000 range. Previous rallies have encountered turbulence at this critical ceiling. Kevin acknowledges this reality but remains optimistic about the likelihood of a sustained breach, attributing his confidence to the weight of the monthly signals emerging from market data.
He cautions investors that these trends are observable on monthly timeframes, which do not suggest immediate price action but rather denote prevailing sentiment trends. “The evidence strongly indicates that the multi-year bear market in ETH-BTC is concluding,” he concludes.
As of the latest updates, ETH is trading at $2,607.
Featured image created with DALL·E, chart from TradingView.com
Source: newsbtc